Investment Q&A

Q: Good Day Team,
I have held BCE for a few years now and bought it at 59.99.
Certainly doesn't seem to be very exciting to hold it seems. Any advise and whether to hold or sell?

Thank you,
John

Q: good afternoon,
These 3 companies from the income portfolio offer outsized yields. Also have 5% in Telus. Want to increase my position from 3 to 5 % in BCE. Telecom are out of favor right now but wondering about the future what will weigh more on BCE rising rates or recovery? The goal is to free cash for growth stocks.
Thanks !

Q: Hi 5i
My son-in-law has a Registered Disability Savings Plan, and I'm going to help him to invest and manage the money to achieve growth with low to moderate risk. He's only 30 so has many years to grow his (and the Government's) contributions. Presently, he only has a mutual fund in it, the Mackenzie Ivy Global Balanced Fund which I've discovered has a 2.38% MER.
Firstly, I'd like to replace this mutual fund with a low cost ETF that is relatively safe but can still show some good growth. To this end, can you recommend two or three Canadian ETFs that might be suitable for me to do further research on.
Secondly, in addition to an ETF, at this time he wants to have some single stocks in the RDSP as well. Can you please recommend three or four Canadian blue-chip type growth equities, and that would be of interest to a millennial...so not too boring : )
Thank you!

Q: Apples vs oranges vs olives question....
I still hold SJ and just noticed internalized that it has been dropped from the portfolios. Only a half position and I have some cash to invest so looking to maybe sell it and buy a new full position. My portfolio is well balanced although selling SJ will make me a bit light in materials so might prioritize a materials stock like CCL or AEM. Problem is I dont like non voting shares and I historically have timed all my mining purchases poorly....seem to buy on the highs in that sector...In general I am a balanced portfolio follower with tendencies to start buying more from the income portfolio. So looking at stocks in the portfilio I might look at adding a full postion can you rank best buys right now with +5 year hold. SJ ( hold and add to it), TFII, CCL, AEM, BCE, other non financial/ non industrial from the balance/income portfolio high on your list buy list right now.

Q: I have some extra cash sitting in a bank account earning next to nothing. I hold positions in the above companies and am thinking about adding to one of them. I understand that no equity investment is truly safe but which company would be your pick if capital preservation and dividend safety was top of mind. Thank you.

Q: Plea.se comment on Telus results.
Also, I know your two preferred companies in the Canadian telco space are Telus (growth) and BCE (income). I ran a comparative chart for T, BCE and CCA, the results are overwhemingly in favour of CCA at every timeframe (1 month, 3month, 1 year, 3 year and especially 5 year). Excluding dividends CCA is up 80% on the 5 year vs. T at 35% and BCE down 4%. YTD CCA is up 18% and BCE is flat in this very strong market. Is there something in the risk profile of CCA that I may be missing? Any thoughts on why CCA has been so strong YTD.
Thanks for the great service.

Q: I'm looking to reduce my portfolio weighting in Financials and Telecommunications.

The question for both adjustments is the same: for these stocks would you recommend eliminating one entirely or just reducing my holdings in both? I will be adding more exposure in the US industrial and defensive consumer sectors with the freed up cash. I should add that for all of these stocks I'm probably pushing my weighting a bit high, at 5-7%.

For financials: BMO and RY (assuming I would sell BMO over RY)
For telecom: T and BCE (assume I would sell BCE over T)

All of these are held in registered accounts, and I'm still 10+ years out from retirement. I currently hold 24 stocks across my registered accounts.

Q: Hello:

Doing a little cleanup and wondering if NA, BCE, SJR.B or HPQ are worth holding. For sure I have plenty of Canadian financial exposure without NA. I also hold Telus but wondering about dropping Shaw and/or BCE. HP seems to be on the upswing with COVID but is it a long-term keeper?

And then, if you think some can go, what might I substitute? NVDA for HPQ? Would US telcom companies be attractive?

These are held in RRSP, 20 year horizon.

Thanks for your excellent service.

Q: I own bce in my rrsp account. I know it has a good dividend but the stock has been flat for the last few years. I was wondering if you could recommend another dividend stock that was relatively safe but would have a bit more growth potential.

Q: Hello 5i

Could you please let me which option below you’d select and what would be your favorite dividend grower with stock appreciation to add new money to? BCE is yielding 6% and is either

1. A great gic as it pays a solid 6% return but business is flat and will not grow.

2. A shrinking business and will lower in value going forward.

3. A growth and income stock that provides a great yield, continues to increase that yield and will growth the business business (worst days behind it)

Q: If you already held Telus and were looking for more telecom, would you lean to BCE or the new Telus International?

Thanks.

Q: I am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: I have a significant holding in BCE and a smaller amount of T. I am wondering if I should continue to hold them or move on to something else. BCE has been performing poorly but has a nice dividend. I think that BCE has been hurt in its media division by the pandemic so might improve particularly with sporting events coming back. T has performed better but its dividend is not quite as good. Perhaps the most important driver will be 5G. When do you think this will become important and how significant do you think it will be?
Thanks, as always, for your insight.
Ian

Q: Hi, purely in terms of relative dividend security could you please rank the above blue chips companies over the next 5-10 years.Thanks.

Q: Hi, I feel my Tech. Sector 30+% is getting too big, in case a correction is in the future.
T- 3.5 - Kxs- 5 - Lspd- 4.4 -Pho -4.3 - Real -4.1
Csu- 3.5 - Syz - 3.4 - Stc- 2.1 -Bce - 3.4%
Would you consider all these Tech. Stock? I like to keep my sector allocation to 9 or 10 sectors for simplicity ,but I do know there are sub- groups.
Would you sell any of these positions ,or trim all or some? Thinking a 18-22% sector weight, would you agree?
Thanks

Q: I am looking to "trim the fat" from my TFSA, which currently holds 20 stocks: ATD, BCE, BMO, BNS, CCO, CM, ENB, FFH, PDYPF, INO.UN, LAS, NXE, NWC, NA, NTR, PEY, PZA, MJJ, TRP, WELL. Are there any positions that raise red flags with you? In addition, could you suggest 3 or 4 value picks suitable for a long-term hold (20 years plus)?
Thank you!

Q: Good Day,

My fiancé has recently begun investing. Currently she has:
254 shares of VBAL
16 shares in Royal Bank
27 shares of BCE

She has $1300 available to invest in her TFSA and $500.00 to invest in her RRSP. She is a conservative investor.

We are wondering:
What would you suggest for next steps in terms of shares/etf to purchase in this small portfolio? Or should we just buy more VBAL?

In addition, would it be best to wait a little to see if there is a ‘better deal’ in a few months?

Please take as many of my questions as you see fit.

Regards,

Ryan

Q: I currently own $10K in each of these companies,,, looking to invest another $10k into possibly SLF or BCE. I look at 1 year at a time and then judge after. My aim is growth. Would you change anything?

Q: BCE oversold here? Does price reflect slower growth versus T (fwd PE 16.6 versus 21 for T) or could price drift lower still in your opinion?
Telus trading well above its historical PE and PEG levels,
T is higher growth but based on valuation , BCE seems to be the better buy.

Q: No rush to answer. Retired, dividend-income investor. I am a position "light" in the Communications sector. I already have a full position in BCE....looking to add one of Telus, Shaw, Cogeco, Rogers or another name you might suggest.

When I look at the various metrics (P/E, P/BV, P/CF, P/S, ROE) I filtered out Telus, leaving SJR and CCA and RCI. Reading past questions, some quite dated, I am wondering if time has changed your opinions on these three.

Shaw has a nice (5.4%) but slow-growing dividend. ROE 10%. It's chart looks good from a value point of view, but is it a value trap? Very poor momentum.

Cogeco has a lower (2.6%) but faster growing dividend. ROE 16%. It's chart shows better momentum. I also wonder whether a new takeover offer might be in the future?

Rogers is just ok across the board.

I'm leaning towards Cogeco, but wanted your advice first. What odds would you place on a take-over happening? Please rank all three in order of your preference to buy.

Thanks...Steve

Rogers